Value? Growth?

On the Value Front here are the comparisons to others in the industry:

Starbucks
P/S 3.05
P/B 8.00
PEG RATIO 1.37

Dunkin Donuts
P/S 5.79
P/B 12.08
PEG RATIO 1.69

Tim Hortons
P/S 2.46
P/B 6.52
PEG RATIO 1.56

Krispy Kreme
P/S 2.01
P/B 3.05
PEG RATIO .97

KKD is trading at a 45% discount to the average P/S
KKD is trading at a 66% discount to the average P/B
KKD is trading at a 36% discount to the average PEG RATIO

On the Growth Front...They have recently announced a new initiative to GROW Store Base by 71% over the next 4 years both domestically and internationally. They announced a Key Executive Hire for this expansion. They have a strong balance sheet to execute this strategy with an exceptional tax loss asset.

If they do not get bought (as Bloomberg has recently noted them as a target) in the next 60 to 90 days...

They have that look of a stock that trades up to $20'ish in that time and every body looks at it in April and says to themselves that it was obvious in hindsight that they were trading at a low valuation in December and January.

The thing is most of those people saying that will not have been the people that bought in during December and January. They will be doubters all the way up until the market establishes the higher price as the reasonable valuation.

Actually...looking at the comps reinforces the thought that any near term acquisition would most likely be in the $20 +\- range as anything less would be considered too cheap for existing shareholders compared with industry peers.

Any analysis would need to take into account the $240 Million Tax Asset.

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